Last visit was: 05 Sep 2026, 08:38 It is currently 05 Sep 2026, 08:38
Close
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Close
Request Expert Reply
Confirm Cancel
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 05 Sep 2026
Posts: 113,150
Own Kudos:
839,300
 [2]
Given Kudos: 111,330
Products:
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 113,150
Kudos: 839,300
 [2]
1
Kudos
Add Kudos
1
Bookmarks
Bookmark this Post
User avatar
Archit3110
User avatar
Major Poster
Joined: 18 Aug 2017
Last visit: 05 Sep 2026
Posts: 8,811
Own Kudos:
5,333
 [1]
Given Kudos: 243
Status:You learn more from failure than from success.
Location: India
Concentration: Sustainability, Marketing
GMAT Focus 1: 545 Q79 V79 DI73
GMAT Focus 2: 645 Q83 V82 DI81
GPA: 4
WE:Marketing (Energy)
GMAT Focus 2: 645 Q83 V82 DI81
Posts: 8,811
Kudos: 5,333
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
User avatar
gvij2017
Joined: 09 Aug 2017
Last visit: 18 Jun 2024
Posts: 662
Own Kudos:
Given Kudos: 778
Posts: 662
Kudos: 518
Kudos
Add Kudos
Bookmarks
Bookmark this Post
User avatar
UB001
Joined: 26 Dec 2018
Last visit: 10 Apr 2022
Posts: 106
Own Kudos:
Given Kudos: 91
Location: India
Posts: 106
Kudos: 258
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Cost Price = 90 cents
Selling Price = $1.2
Profit = 30 cents
Profit % = (Profit/Cost Price) x 100 %
= (30/90) x 100 %
= 33 1/3%
Answer Option C is Correct
User avatar
sunshineeee
Joined: 17 May 2020
Last visit: 05 Sep 2026
Posts: 174
Own Kudos:
Given Kudos: 266
Location: Indonesia
Products:
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Dear Bunuel,

Could you explain why the % profit is calculated per cost, not revenue/sales price?
I thought it's profit/sales = 0.3/12 = 25% (like in gross/net margin)

Thank you.



Bunuel
What is the percent profit an ice cream seller makes on vanilla ice cream if vanilla ice cream costs him 90 cents per scoop to make and he sells it at $1.20 per scoop?

A. 25%
B. 30%
C. 33 1/3%
D. 40%
E. 50%
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 05 Sep 2026
Posts: 113,150
Own Kudos:
Given Kudos: 111,330
Products:
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 113,150
Kudos: 839,300
Kudos
Add Kudos
Bookmarks
Bookmark this Post
sunshineeee
Dear Bunuel,

Could you explain why the % profit is calculated per cost, not revenue/sales price?
I thought it's profit/sales = 0.3/12 = 25% (like in gross/net margin)

Thank you.





There is really nothing to explain here, these are simply definitions.

Percent profit = profit / cost price.
Profit margin = profit / selling price (revenue).

So your 25% calculation is the profit margin, not the percent profit.
User avatar
sunshineeee
Joined: 17 May 2020
Last visit: 05 Sep 2026
Posts: 174
Own Kudos:
Given Kudos: 266
Location: Indonesia
Products:
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Thank you, Bunuel! Got it!
Bunuel


There is really nothing to explain here, these are simply definitions.

Percent profit = profit / cost price.
Profit margin = profit / selling price (revenue).

So your 25% calculation is the profit margin, not the percent profit.
Moderator:
Math Expert
113150 posts